Custom Truck One Source Posts 13.2 Percent Rental Volume Jump in Fourth Quarter, 14.3 Percent for Full Year
Custom Truck One Source, a provider of specialty equipment to the electric utility, telecom, rail, and other infrastructure-related end markets, posted fourth quarter 2025 rental revenue of $142 million compared to $125.5 million in the fourth quarter of 2024, a 13.2-percent year-over-year increase. Total fourth quarter revenue was $528.2 million, compared to Q424 total revenue of $520.7, a 1.4-percent increase.
Quarterly adjusted EBITDA was $120.7 million, an increase of $18.7 million or 18.4 percent, compared to the fourth quarter of 2024. Quarterly average OEC on rent increased by $165.9 million, or 13.7 percent, compared to the fourth quarter of 2024.
“In the fourth quarter, we achieved record quarterly revenue, as well as sequential and year-over-year improvement in both revenue and adjusted EBITDA, delivering 18 percent adjusted EBITDA growth in the quarter and 13 percent for the full year,” said Ryan McMonagle, CEO of CTOS. “The significant improvements in our core T&D markets that we experienced in the third quarter continued into the fourth quarter, positioning our ERS segment to finish the year with 20 percent revenue growth in the fourth quarter and 17 percent for the full year. For the quarter, our rental fleet achieved average utilization of almost 84 percent, the highest levels in nearly three years. We ended the year with total OEC of $1.64 billion, the highest in our history, which should support our expected growth within ERS in 2026.
“TES finished the year with strong performance, achieving record annual revenue of just under $1.1 billion, up 4 percent for the full year. Anticipated seasonal trends, as well as sustained demand for vocational vehicles across our end markets continued to drive record performance within the TES segment. We made progress reducing our inventory in the fourth quarter, with inventory declining more than $100 million, which sets us up well for 2026, as we remain focused on working capital management, free cash flow generation and continued deleveraging. We are optimistic about 2026, as CTOS is well-positioned to benefit from secular tailwinds driven by data center investments, electrification, infrastructure investment and utility grid upgrades, leading to another year of expected growth across our segments,”
A full year boost
For the full year 2025, rental revenue reached $506.2 million, compared to $443 million in 2024, a 14.3-percent increase. Total revenue for the full year totaled $1,944 million, compared to $1,802.3, a 7.9-percent increase. Equipment sales revenue for the full year was $1,304.5 million, compared to $1,223 million, a 6.7-percent increase. Parts sales and service revenue declined slightly from $136.3 million to $133.3 million, a 2.2-percent decline.
The 13.5-percent increase in ERS segment rental revenue in the fourth quarter of 2025 compared to the fourth quarter of 2024 was the result of improved average fleet utilization (which increased to 83.6 percent compared to 78.9 percent) driven by increased rental volume, with average OEC on rent increasing by 13.7 percent year-over-year.
Custom Truck One Source is headquartered in Kansas City, Mo., and is No. 15 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.